Summaries of health policy coverage from major news organizations

MEDICARE FRAUD: UC HOSPITALS COME UNDER FIRE

In a case with "broad implications," the five medical centers in the University of California (UC) system have been sued for Medicare fraud by two former employees, and could face "severe financial penalties," SAN DIEGO UNION-TRIBUNE reports. Sources said that the medical centers are accused of defrauding the government by billing for care provided by faculty physicians when the services were actually provided by residents, interns or fellows. The University of Pennsylvania paid $30 million last year to settle similar accusations. WHISTLE WHILE YOU WORK: Federal authorities are investigating the lawsuit, which was filed under the federal whistle-blower's law. The law permits employees who "uncover financial wrongdoing to share with the government in any recovered proceeds." The suit must remain confidential while the government decides whether the claim has merit and whether it will take over the suit. If the government chooses not to pursue the suit, the whistle-blowers could pursue it on their own. University officials denied any knowledge of false billing and said that they were cooperating with the investigation. IMPACT: The UNION-TRIBUNE reports that any financial penalties resulting from the suit "could have a major administrative and financial impact on the medical centers, several of which are reeling from serious financial problems." The University of California has medical centers in Davis, Irvine, Los Angeles, San Diego and San Francisco (Dalton, 7/13).

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